CITE
29 USC Sec. 186 01/05/2009
EXPCITE
TITLE 29 - LABOR
CHAPTER 7 - LABOR-MANAGEMENT RELATIONS
SUBCHAPTER IV - LIABILITIES OF AND RESTRICTIONS ON LABOR AND
MANAGEMENT
HEAD
Sec. 186. Restrictions on financial transactions
STATUTE
(a) Payment or lending, etc., of money by employer or agent to
employees, representatives, or labor organizations
It shall be unlawful for any employer or association of employers
or any person who acts as a labor relations expert, adviser, or
consultant to an employer or who acts in the interest of an
employer to pay, lend, or deliver, or agree to pay, lend, or
deliver, any money or other thing of value -
(1) to any representative of any of his employees who are
employed in an industry affecting commerce; or
(2) to any labor organization, or any officer or employee
thereof, which represents, seeks to represent, or would admit to
membership, any of the employees of such employer who are
employed in an industry affecting commerce; or
(3) to any employee or group or committee of employees of such
employer employed in an industry affecting commerce in excess of
their normal compensation for the purpose of causing such
employee or group or committee directly or indirectly to
influence any other employees in the exercise of the right to
organize and bargain collectively through representatives of
their own choosing; or
(4) to any officer or employee of a labor organization engaged
in an industry affecting commerce with intent to influence him in
respect to any of his actions, decisions, or duties as a
representative of employees or as such officer or employee of
such labor organization.
(b) Request, demand, etc., for money or other thing of value
(1) It shall be unlawful for any person to request, demand,
receive, or accept, or agree to receive or accept, any payment,
loan, or delivery of any money or other thing of value prohibited
by subsection (a) of this section.
(2) It shall be unlawful for any labor organization, or for any
person acting as an officer, agent, representative, or employee of
such labor organization, to demand or accept from the operator of
any motor vehicle (as defined in section 13102 of title 49)
employed in the transportation of property in commerce, or the
employer of any such operator, any money or other thing of value
payable to such organization or to an officer, agent,
representative or employee thereof as a fee or charge for the
unloading, or in connection with the unloading, of the cargo of
such vehicle: Provided, That nothing in this paragraph shall be
construed to make unlawful any payment by an employer to any of his
employees as compensation for their services as employees.
(c) Exceptions
The provisions of this section shall not be applicable (1) in
respect to any money or other thing of value payable by an employer
to any of his employees whose established duties include acting
openly for such employer in matters of labor relations or personnel
administration or to any representative of his employees, or to any
officer or employee of a labor organization, who is also an
employee or former employee of such employer, as compensation for,
or by reason of, his service as an employee of such employer; (2)
with respect to the payment or delivery of any money or other thing
of value in satisfaction of a judgment of any court or a decision
or award of an arbitrator or impartial chairman or in compromise,
adjustment, settlement, or release of any claim, complaint,
grievance, or dispute in the absence of fraud or duress; (3) with
respect to the sale or purchase of an article or commodity at the
prevailing market price in the regular course of business; (4) with
respect to money deducted from the wages of employees in payment of
membership dues in a labor organization: Provided, That the
employer has received from each employee, on whose account such
deductions are made, a written assignment which shall not be
irrevocable for a period of more than one year, or beyond the
termination date of the applicable collective agreement, whichever
occurs sooner; (5) with respect to money or other thing of value
paid to a trust fund established by such representative, for the
sole and exclusive benefit of the employees of such employer, and
their families and dependents (or of such employees, families, and
dependents jointly with the employees of other employers making
similar payments, and their families and dependents): Provided,
That (A) such payments are held in trust for the purpose of paying,
either from principal or income or both, for the benefit of
employees, their families and dependents, for medical or hospital
care, pensions on retirement or death of employees, compensation
for injuries or illness resulting from occupational activity or
insurance to provide any of the foregoing, or unemployment benefits
or life insurance, disability and sickness insurance, or accident
insurance; (B) the detailed basis on which such payments are to be
made is specified in a written agreement with the employer, and
employees and employers are equally represented in the
administration of such fund, together with such neutral persons as
the representatives of the employers and the representatives of
employees may agree upon and in the event the employer and employee
groups deadlock on the administration of such fund and there are no
neutral persons empowered to break such deadlock, such agreement
provides that the two groups shall agree on an impartial umpire to
decide such dispute, or in event of their failure to agree within a
reasonable length of time, an impartial umpire to decide such
dispute shall, on petition of either group, be appointed by the
district court of the United States for the district where the
trust fund has its principal office, and shall also contain
provisions for an annual audit of the trust fund, a statement of
the results of which shall be available for inspection by
interested persons at the principal office of the trust fund and at
such other places as may be designated in such written agreement;
and (C) such payments as are intended to be used for the purpose of
providing pensions or annuities for employees are made to a
separate trust which provides that the funds held therein cannot be
used for any purpose other than paying such pensions or annuities;
(6) with respect to money or other thing of value paid by any
employer to a trust fund established by such representative for the
purpose of pooled vacation, holiday, severance or similar benefits,
or defraying costs of apprenticeship or other training programs:
Provided, That the requirements of clause (B) of the proviso to
clause (5) of this subsection shall apply to such trust funds; (7)
with respect to money or other thing of value paid by any employer
to a pooled or individual trust fund established by such
representative for the purpose of (A) scholarships for the benefit
of employees, their families, and dependents for study at
educational institutions, (B) child care centers for preschool and
school age dependents of employees, or (C) financial assistance for
employee housing: Provided, That no labor organization or employer
shall be required to bargain on the establishment of any such trust
fund, and refusal to do so shall not constitute an unfair labor
practice: Provided further, That the requirements of clause (B) of
the proviso to clause (5) of this subsection shall apply to such
trust funds; (8) with respect to money or any other thing of value
paid by any employer to a trust fund established by such
representative for the purpose of defraying the costs of legal
services for employees, their families, and dependents for counsel
or plan of their choice: Provided, That the requirements of clause
(B) of the proviso to clause (5) of this subsection shall apply to
such trust funds: Provided further, That no such legal services
shall be furnished: (A) to initiate any proceeding directed (i)
against any such employer or its officers or agents except in
workman's compensation cases, or (ii) against such labor
organization, or its parent or subordinate bodies, or their
officers or agents, or (iii) against any other employer or labor
organization, or their officers or agents, in any matter arising
under subchapter II of this chapter or this chapter; and (B) in any
proceeding where a labor organization would be prohibited from
defraying the costs of legal services by the provisions of the
Labor-Management Reporting and Disclosure Act of 1959 [29 U.S.C.
401 et seq.]; or (9) with respect to money or other things of value
paid by an employer to a plant, area or industrywide labor
management committee established for one or more of the purposes
set forth in section 5(b) of the Labor Management Cooperation Act
of 1978.
(d) Penalties for violations
(1) Any person who participates in a transaction involving a
payment, loan, or delivery of money or other thing of value to a
labor organization in payment of membership dues or to a joint
labor-management trust fund as defined by clause (B) of the proviso
to clause (5) of subsection (c) of this section or to a plant,
area, or industry-wide labor-management committee that is received
and used by such labor organization, trust fund, or committee,
which transaction does not satisfy all the applicable requirements
of subsections (c)(4) through (c)(9) of this section, and willfully
and with intent to benefit himself or to benefit other persons he
knows are not permitted to receive a payment, loan, money, or other
thing of value under subsections (c)(4) through (c)(9) violates
this subsection, shall, upon conviction thereof, be guilty of a
felony and be subject to a fine of not more than $15,000, or
imprisoned for not more than five years, or both; but if the value
of the amount of money or thing of value involved in any violation
of the provisions of this section does not exceed $1,000, such
person shall be guilty of a misdemeanor and be subject to a fine of
not more than $10,000, or imprisoned for not more than one year, or
both.
(2) Except for violations involving transactions covered by
subsection (d)(1) of this section, any person who willfully
violates this section shall, upon conviction thereof, be guilty of
a felony and be subject to a fine of not more than $15,000, or
imprisoned for not more than five years, or both; but if the value
of the amount of money or thing of value involved in any violation
of the provisions of this section does not exceed $1,000, such
person shall be guilty of a misdemeanor and be subject to a fine of
not more than $10,000, or imprisoned for not more than one year, or
both.
(e) Jurisdiction of courts
The district courts of the United States and the United States
courts of the Territories and possessions shall have jurisdiction,
for cause shown, and subject to the provisions of section 381 of
title 28 (relating to notice to opposite party) to restrain
violations of this section, without regard to the provisions of
section 17 of title 15 and section 52 of this title, and the
provisions of chapter 6 of this title.
(f) Effective date of provisions
This section shall not apply to any contract in force on June 23,
1947, until the expiration of such contract, or until July 1, 1948,
whichever first occurs.
(g) Contributions to trust funds
Compliance with the restrictions contained in subsection
(c)(5)(B) of this section upon contributions to trust funds,
otherwise lawful, shall not be applicable to contributions to such
trust funds established by collective agreement prior to January 1,
1946, nor shall subsection (c)(5)(A) of this section be construed
as prohibiting contributions to such trust funds if prior to
January 1, 1947, such funds contained provisions for pooled
vacation benefits.
SOURCE
(June 23, 1947, ch. 120, title III, Sec. 302, 61 Stat. 157; Pub. L.
86-257, title V, Sec. 505, Sept. 14, 1959, 73 Stat. 537; Pub. L. 91-
86, Oct. 14, 1969, 83 Stat. 133; Pub. L. 93-95, Aug. 15, 1973, 87
Stat. 314; Pub. L. 95-524, Sec. 6(d), Oct. 27, 1978, 92 Stat. 2021;
Pub. L. 98-473, title II, Sec. 801, Oct. 12, 1984, 98 Stat. 2131;
Pub. L. 101-273, Sec. 1, Apr. 18, 1990, 104 Stat. 138; Pub. L. 104-
88, title III, Sec. 337, Dec. 29, 1995, 109 Stat. 954.)
REFERENCES IN TEXT
The Labor-Management Reporting and Disclosure Act of 1959,
referred to in subsec. (c)(8), is Pub. L. 86-257, Sept. 14, 1959,
73 Stat. 519, as amended, which is classified principally to
chapter 11 (Sec. 401 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set
out under section 401 of this title and Tables.
Section 5(b) of the Labor Management Cooperation Act of 1978,
referred to in subsec. (c)(9), probably means section 6(b) of Pub.
L. 95-524, which is set out as a note under section 175a of this
title.
Section 381 of title 28, referred to in subsec. (e), was omitted
from the revision of Title 28, Judiciary and Judicial Procedure, by
act June 25, 1948, ch. 646, 62 Stat. 869. See rule 65 of Federal
Rules of Civil Procedure set out in the Appendix to Title 28.
Chapter 6 (Sec. 101 et seq.) of this title, referred to in
subsec. (e), is a reference to act Mar. 23, 1932, ch. 90, 47 Stat.
70, popularly known as the Norris-LaGuardia Act.
AMENDMENTS
1995 - Subsec. (b)(2). Pub. L. 104-88 substituted "(as defined in
section 13102 of title 49)" for "(as defined in part II of the
Interstate Commerce Act)".
1990 - Subsec. (c)(7)(C). Pub. L. 101-273 added subcl. (C).
1984 - Subsec. (d). Pub. L. 98-473, in amending subsec. (d)
generally, added par. (1), designated existing provisions as par.
(2), inserted reference to par. (1), and inserted provisions
relating to commission of a felony.
1978 - Subsec. (c)(9). Pub. L. 95-524 added cl. (9).
1973 - Subsec. (c)(8). Pub. L. 93-95 added cl. (8).
1969 - Subsec. (c)(7). Pub. L. 91-86 added cl. (7).
1959 - Subsec. (a). Pub. L. 86-257 amended subsec. (a) generally.
Prior to amendment subsec. (a) read as follows: "It shall be
unlawful for any employer to pay or deliver, or to agree to pay or
deliver, any money or other thing of value to any representative of
any of his employees who are employed in an industry affecting
commerce."
Subsec. (b). Pub. L. 86-257 amended subsec. (b) generally. Prior
to amendment subsec. (b) read as follows: "It shall be unlawful for
any representative of any employees who are employed in an industry
affecting commerce to receive or accept, or to agree to receive or
accept, from the employer of such employees any money or other
thing of value."
Subsec. (c). Pub. L. 86-257 substituted "in respect to any money
or other thing of value payable by an employer to any of his
employees whose established duties include acting openly for such
employer in matters of labor relations or personnel administration
or to any representative of his employees, or to any officer or
employee of a labor organization, who is also an employee or former
employee of such employer, as compensation for, or by reason of,
his service as an employee of such employer" for "with respect to
any money or other thing of value payable by an employer to any
representative who is an employee or former employee of such
employer, as compensation for, or by reason of, his services as an
employee of such employer" in cl. (1), and added cl. (6).
EFFECTIVE DATE OF 1995 AMENDMENT
Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
of Pub. L. 104-88, set out as an Effective Date note under section
701 of Title 49, Transportation.
APPLICABILITY TO COLLECTIVE BARGAINING AGREEMENTS
Amendment by Pub. L. 95-524 not to affect terms and conditions of
any collective bargaining agreement whether in effect prior to or
entered into after Oct. 27, 1978, see section 6(e) of Pub. L. 95-
524, set out as an Effective Date note under section 175a of this
title.